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TABLE OF CONTENTS

INTRODUCTION 3

GENERAL INFO ABOUT THE PROPERTY 3

SELECTED ROOM TYPES 3

Business Single Rooms 3

Business Double Rooms 4

Junior Suites 4

SELECTED FACILITIES 5

MÐ"©diterranÐ"©en 5

SÐ"©rÐ"©nitÐ"© Spa 5

“Aquarius” Recreation Lounge 5

“Rainer III” Seminar Hall 5

MAJOR COMPETITORS 6

Hotel Mirabeau 6

Hotel Hermitage 6

Hotel Columbus 6

Le Meridien Beach Plaza 7

CALCULATIONS RELATED TO ROOMS DIVISION ACTIVITIES 7

�Market Condition Approach’ and Rack Rates 7

�Rule of Thumb’ Approach and Construction Cost 8

Calculating the Actual Expected Revenue 9

Calculating the Potential Revenue 9

Calculating the Yield 10

Calculating the RevPAR 11

Overbooking: Potential Revenue Matrix 12

EVENTS TAKING PLACE FROM 14TH MAY TO 27TH MAY 2007 IN MONACO REGION 12

DETERMINING DAILY DEMAND FOR THE TWO-WEEK PERIOD 13

PLANNED REVENUE MANAGEMENT STRATEGIES 14

General Strategies used on days with high demand 14

General strategies to be implemented on low-demand days 15

CONCLUSION 16

APPENDIX 17

REFERENCES 19

INTRODUCTION

Developing efficient revenue management strategies for a hotel is a task that requires a wide-ranging study of the external business environment in a given locality. In addition, careful forecasting and proper calculations should be in place, so that service pricing and other revenue strategies are matched with anticipated demand. Proper demand forecasting for a given period of time and place, includes taking into account major events that occur in the area for the time being.

Our report is aimed at presenting how revenue management strategies are to be developed and implemented into a four-star hotel downtown Monaco for the period between 14th and 27th of May, 2007. In support, appropriate calculations of Actual and Potential Revenue levels, Yield Percentage, RevPAR, and other estimates relating to Rooms Division activities are accurately performed and displayed.

In the following pages, we motivate and demonstrate how our upper-mid-range service hotel operates in an environment of competition. We also determine our revenue management strategies in order to accomplish what we consider a well thought-out campaign to maximize profits.

GENERAL INFO ABOUT THE PROPERTY

We are opening a four-star service hotel called Excelsior in Monaco, located in the city center. The hotel has 149 rooms of three types including: 50 Business Single, 90 Business Double, and 9 Suites. The maximum amount of guests Excelsior can accommodate is 248. A single room can accommodate only one person. Double rooms and suites can have up to two guests. We choose to have the following facilities at our hotel: a recreation lounge, a piano bar, a conference hall accommodating 100 people, one fine-dining restaurant, and spa. The function for the given facilities and the motivation behind choosing the specific types of rooms is explained in detail further below.

The property consists of 3,565m2 of built area reserved for rooms and 1,435m2 of area set aside for additional facilities.

SELECTED ROOM TYPES

The Excelsior in Monaco has three different room types.

Business Single Rooms

The Business-Single-Room zone of our hotel consists of 1000m2. Each room has 20m2of area. Exselsior’s business single rooms have the following additional guest amenities:

Air conditioning

Balcony

In-room safe box

Mini-bar

Luxurious toilets with bathtubs

Seaside view

Wireless internet access

Satellite TV

Telephone

All of the single rooms at the Excelsior hotel can accommodate no more than one person per room , due to limitations of area.

Business Single rooms at the Excelsior hotel are exclusively designed to accommodate individual leisure or business travelers who come to Monaco to experience or be part of the organizational body of various events throughout the year.

Business Double Rooms

The Business-Double-Room zone at Excelsior takes up 2250m2 of space, each room having 25m2 of area. The following extra guest commodities are in place in addition to what Business Single already have:

Large bathrooms with Jacuzzi bathtubs

A coffee sit-out for small business or leisure meetings

The Business Double rooms are bigger in size than the Business Single and can accommodate up to two people per room. Our Double rooms meets the needs of business and leisure clientele wishing to stay in a more spacious environment providing more amenities.

Junior Suites

Designed to satisfy the most demanding part of our guest mix, the nine suites at Excelsior hotel are lavishly decorated, full of space, and offer high-end technology to exceed the expectations of its occupants. With the exclusive permission from the Royal Monegasque family, we have named each of our nine Junior Suites after a Royal Member:

Prince